System and method for using a prepaid card

• US 6,999,569 B2
• Filed: 04/23/2002
• Issued: 02/14/2006
• Est. Priority Date: 10/28/1998
• Status: Expired due to Fees

• Current Assignee: Thomson Licensing (Vantiva SA)
• Original Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Inventors: Hunter, Burnett D., Wiggins, Janice, McKenzie, Kevin, Risafi, Nicole N., Stangle, Brian, Forte, Vincent
• Primary Examiner(s): NGUYEN, DUC MINH
• Application Number:
  US10/128,633
• Publication Number:
  US 20030053609A1
• Time in Patent Office: 1,393 Days
• Field of Search: 379/114.01, 379/112, 379115-116, 379/144.04, 379/145, 37911415-1142, 235/2, 235/375, 235379-380, 902/27, 902/26
• US Class Current: 379/144.01
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/28 Pre-payment schemes, e.g. "pay before"
• CPC Class Codes: G06Q 20/341 Active cards, i.e. cards including their own processing means, e.g. including an IC or chip
• CPC Class Codes: G06Q 20/342 Cards defining paid or billed services or quantities
• CPC Class Codes: G06Q 20/3433 the counter having monetary units
• CPC Class Codes: G06Q 20/349 Rechargeable cards
• CPC Class Codes: G06Q 20/355 Personalisation of cards for use
• CPC Class Codes: G06Q 20/4014 Identity check for transactions
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G07F 17/0028 Use of a wired telephone or public communication device charging and metering the use of the telecommunication network H04M17/02
• CPC Class Codes: G07F 7/02 by keys or other credit registering devices
• CPC Class Codes: G07F 7/025 by means, e.g. cards, providing billing information at the time of purchase, e.g. identification of seller or purchaser, quantity of goods delivered or to be delivered
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system
• CPC Class Codes: H04M 15/00 Arrangements for metering, time-control or time indication ; Metering, charging or billing arrangements for voice wireline or wireless communications, e.g. VoIP
• CPC Class Codes: H04M 15/51 for resellers, retailers or service providers
• CPC Class Codes: H04M 15/68 Payment of value-added services
• CPC Class Codes: H04M 15/765 Linked or grouped accounts, e.g. of users or devices
• CPC Class Codes: H04M 15/77 involving multiple accounts per user
• CPC Class Codes: H04M 17/00 Prepayment of wireline communication systems, wireless communication systems or telephone systems using a coded card to authorise calls from a telephone set H04M1/675
• CPC Class Codes: H04M 17/02 : Coin-freed or check-freed systems , e.g. mobile- or card-operated phones, public telephones or booths
• CPC Class Codes: H04M 17/106 : using commercial credit or debit cards
• CPC Class Codes: H04M 17/20 : with provision for recharging the prepaid account or card, or for credit establishment
• CPC Class Codes: H04M 2017/14 : using commercial credit/debit cards, e.g. VISA, AMEX
• CPC Class Codes: H04M 2215/0196 : Payment of value-added services, mainly when their charges are added on the telephone bill, e.g. payment of non-telecom services, e-commerce, on-line banking
• CPC Class Codes: H04M 2215/54 : Resellers-retail or service providers billing, e.g. agreements with telephone service operator, activation, charging/recharging of accounts
• CPC Class Codes: H04M 2215/724 : Linked accounts
• CPC Class Codes: H04M 2215/7254 : Multiple accounts per user

Abstract

A system and method for transferring money by use of a prepaid card account is disclosed wherein two cards are issued to the user accountholder, one of which is provided to another user, and either user may add value to the prepaid account so that the other user may use the card and that value in a financial transaction.

Claims

1. A system for conducting a financial transaction by a prepaid card user with a prepaid card, comprising:

a card issuer for issuing said prepaid card having first pre-encoded card identification data with an associated account, to said prepaid card user;

a terminal for allowing said user to select a personal identification number, which selection allows for initiating activation of said card, and for loading said associated account with a balance, said terminal further capable of receiving, subsequent to activation, at the time of said transaction, second pre-encoded card identification data and a second personal identification number entered by said user for that transaction;

a card processing center in communication with said terminal for storing said first data, first personal identification number and said balance, said center for receiving from said terminal at the time of said transaction second pre-encoded card identification data and said second personal identification number, and for verifying the transaction'"'"'s validity upon matching said stored first data and first personal identification number with said second pre-encoded card identification data and entered second personal identification number.

2. The system of claim 1 wherein said terminal comprises a telephone and an interactive voice response unit.

3. The system of claim 1 wherein said transaction'"'"'s validity is denied in the event there is not a match between the stored first data and first identification number with said second pre-encoded card identification data and entered second personal identification number.

4. The system of claim 1 wherein subsequent to activation said terminal allows said user to change the user'"'"'s personal identification number.

5. The system of claim 1 wherein subsequent to activation said terminal allows said user to add value to said balance.

6. The system of claim 1 wherein said balance is automatically adjusted to reflect the value of said transaction.

7. The system of claim 1 wherein said financial transaction includes dispensement of cash.

8. The system of claim 1 wherein said financial transaction includes the transfer of monetary value to another cardholder'"'"'s account.

9. A method for using a prepaid card by a user, comprising;

issuing said prepaid card with a card number associated with an account;

purchasing said issued prepaid card and activating said card at time of purchase, said activation step comprising;

selecting a personal identification number;

selecting a non-preset opening balance for said account; and

transmitting over a communications network to and storing by a card processing center said card number, personal identification number and said balance;

utilizing said activated card to conduct a financial transaction, said utilization step comprising;

transmitting to said card processing center a second card number and second PIN;

verifying said transaction'"'"'s validity as a function of a comparison between said card number and PIN and said second card number and second PIN, respectively, whereby in the event they match the transaction'"'"'s validity is verified.

10. The method of claim 9, wherein said financial transaction comprises one or more of purchasing a product or service, including telephone services, and withdrawing cash.

11. The method of claim 9, further comprising the step of replenishing said prepaid card with additional value.

12. The method of claim 11, wherein said replenishment occurs at regular intervals.

13. The method of claim 9, further comprising the step of changing, subsequent to said activation, said selected personal identification number.

14. The method of claim 9 wherein said activating step is done on either an individual basis or on a batch basis.

15. The method of claim 9 wherein said values are selected and cards are distributed in accordance with a commercial promotion.

16. A system for using a prepaid card in a financial transaction comprising:

an issuer for issuing said prepaid card with card identification data but without a personal identification number or value pre-stored on said card;

terminal means for dispensing to a user said prepaid card and for initiating activation of said card upon selection by said user of a personal identification number, said selection occurring through use of said terminal, said terminal means further for allowing said user to load said card with value;

central processing means for receiving from said terminal means over a communications network said card identification data, personal identification number and said value, and for completing activation by establishing a user card account comprising the received data, number and value;

transaction means connected to said central processing means for initiating said transaction by receiving second card identification data and second personal identification number and forwarding said data and number to said central processing means;

verification means connected to said central processing means for verifying the transaction'"'"'s validity by comparing said data and number with said second data and number.

17. The system of claim 16 wherein said verification means verifies the transaction upon a match of said data and number with second data and second number, and upon determining that said account has sufficient value to cover said transaction.

18. The system of claim 16 wherein said prepaid card may be purchased in any denomination and said card is reloadable whereby said user may replenish said card with value.

19. The system of claim 16 wherein said personal identification number does not appear on said card.

20. The system of claim 16 wherein said financial transaction includes the purchase of products and services, including telephone services.

21. The system of claim 16 further comprising automatic deposit means for depositing into said user'"'"'s account monetary value resulting from said user'"'"'s employment.

22. The system of claim 16 wherein a plurality of cards are issued for the same account.